Canmore is one of the most sought after recreational communities in Canada

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Log homes are certainly not an uncommon sight in the mountain town of Canmore.

However, these homes are often not standard cabins; nor is Canmore Canadian Cottage Association.

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However, the mountain town of about 14,000 just outside Banff National Park is one of the country's top vacation spots, according to a recent report.

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“The three most expensive real estate communities in Canada are Canmore, Whistler and the Muskoka area of ​​Ontario,” said Phil Soper, president and CEO of Royal LePage Canada. The recently released Royal LePage 2024 Spring Recreational Property Report shows that the average price of a single-family detached home – a cottage – will increase by nearly five per cent in Alberta in 2023 to $1,238,900. Vacation Community, Canmore.

The median price of a single-family home there will increase nearly four percent to $1.56 million at the end of 2023.

Although lower than Whistler, which saw a nearly 23 per cent increase in single-family home prices to about $4.4 million, Alberta's overall median price led all provinces, including British Columbia, which averaged nearly $1.1 million at the end of last year.

Overall, the national median price in 2023 for single-family homes among recreational communities dropped one percent to $646,000.

According to the report, this year could be good for recreational facilities.

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For example, real estate prices in Alberta are projected to increase four percent to $1.288 million for a single-family home.

For Canada as a whole, the median single-family vacation home price is expected to increase five per cent to $678,930, which is below the overall median price for Canadian cities and other regions. For example, in February, the Canadian median price for a single-family home — not just real estate — was $792,500.

Soper Notes vacation rentals were among the most negatively impacted by sales and prices in 2022 when interest rates begin to rise. The most significant impact was for waterfront real estate, which saw a nearly eight percent decline in the nation to $1.075 million in 2023.

These are usually homes in sought-after communities like the Okanagan in British Columbia. Its average price dropped about 19 percent to about $2.72 million.

Invermere, popular with Calgarians, also fell 11 per cent to $1.8 million.

Canmore is clearly not a lake community. Also, sales of single-family detached homes account for a small percentage of sales, said Brad Hawker, associate broker at Royal LePage Solutions.

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“The reason is the high price,” he says, noting that most single-family homes in the city cost $1.5 million.

Thus, only a select few buyers can purchase single-family homes. Statistics from the Calgary Real Estate Board for March show that less than a quarter of the 44 resales in Canmore were single-family homes, while apartments accounted for nearly half of all activity.

Overall, sales across all types were up about 22 percent for the year, but down more than 50 percent from March 2021's record sales.

Demand remains steady, given that the benchmark price in Canmore is up nearly 12 percent to $970,500.

Hawker notes that the condominium apartment market is generally the most attractive due to low prices and good supply. The Royal Lepage report said the median price of condos rose nearly 5.5 percent last year to $685,000 in Canmore.

Canmore's geography is surrounded by mountains and because of development restrictions, “it's always going to have a very limited supply,” Hawker says.

Also, its buyer pool is more than just people looking for recreational properties.

“Our demand comes from all over Canada,” Hocker added, noting that many buyers who can work from home are moving to Canmore for year-round living.

Others are already operating and renting in the city and may consider buying soon, Hawker said.

“A lot of first-time buyers were waiting for interest rates to come down.”

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